Cabot Properties sold an industrial real estate portfolio spread across 21 U.S. markets to DRA Advisors for $1.07B.
The sale of the 19.8M SF portfolio comes as the market for industrial property tightens, with occupancy rates on the rise and rents growing in warehouses and distribution centers across the country, the Wall Street Journal reports. Experts said much of today’s industrial tenant demand comes from growing online retailers in need of more distribution space.
The portfolio consists of urban properties averaging about 110k SF, is leased to over 500 tenants and has a 6% overall vacancy rate. The sale represents a shift as smaller, and typically older, urban industrial properties continue to close the pricing gap between larger, rural facilities as retailers expand to distribution centers closer to customers.
